At the end of 2022, Mongolians marched to Sukhbaatar Square in Ulaanbaatar, Mongolia. Thousands attempted to storm the state palace in protest. Mongolians were expressing outrage against soaring inflation and a huge corruption scandal affecting the coal industry.
Whistleblowers accused Erdenes-Tavantolgoi JSC, the largest state-owned coal miner of participating in off-the-book dealings with Chinese and Russian buyers at the border. This sparked an investigation by the Mongolian anti-corruption authorities.
The investigation ended with the arrest of its chief executive Gankhuyag Battulga, several associates, as well as family members. They now await trial, accused of embezzling billions of dollars in coal revenue. It’s also important to note, Mongolia sends 86% of its exports to China, half of which is coal.
As a swift response, the Mongolian government made major reforms in the coal industry. One of which is to exclusively sell coal on the Mongolian Stock Exchange. The government hopes to make full use of the Mongolian Stock Exchange’s trade transparency. A first step to combat any shady dealings around the country’s prized natural resource.
